Apple’s record-breaking earnings report continued Tuesday, with the company posting a strong fiscal third quarter with revenue of $81.43 billion. That’s a 36 percent year-on-year increase and a new record for the June quarter. It also crushes the $73 billion that analysts had expected.
This quarter has traditionally been one of the slower periods for iPhone sales as consumer interest begins to shift towards the next batch of devices that Apple is expected to announce in September. But sales were still impressive compared to this time a year ago, reflecting continued momentum for Apple’s first 5G smartphones.
Rumors strongly suggest that the iPhone 13, 13 Mini, 13 Pro and 13 Pro Max will be iterative upgrades over last year’s phones. The more expensive models could get a 120Hz screen, while the rest of the lineup is set on processor improvements and bigger, improved cameras. Apple is also expected to slightly narrow the notch on this year’s iPhones.
In recent months, Apple has released a redesigned 24-inch iMac and an updated iPad Pro. These devices are the latest to use Apple’s internal M1 chip and are among the most powerful hardware the company has released to date. The 12.9-inch iPad Pro features a Mini LED display, a technology reportedly set to appear in a refreshed MacBook Pro later this year. The 16-inch MacBook Pro, Mac Pro and larger iMac have yet to make the switch to Apple’s proprietary silicon.
Apple continues to focus heavily on its services, which hit an all-time high in the June quarter. In an effort to continue to fuel Apple Music’s growth, Apple rolled out a new lossless streaming layer and Dolby Atmos spatial audio for its premium music service in June. Ted Lasso, one of the originals of Apple TV Plus, just returned for its second season. And Apple also launched podcast subscriptions and channels last month.
Beta testing is underway for the next wave of Apple’s major software updates, including iOS 15, iPadOS 15, tvOS 15, macOS Monterey, and watchOS 8. All will be officially released this fall.
Even as things continue to climb, Apple still faces significant regulatory scrutiny over antitrust issues and the company’s leading influence over the iPhone’s App Store. It’s hardly far from a bitter trial with Epic Games. And with the FTC being led by an antitrust pioneer and lawmakers in the United States considering a series of antitrust laws, CEO Tim Cook has reportedly called Chairman Nancy Pelosi to warn against pushing rushed policies.
Tesla CEO Elon Musk took the opportunity to criticize Apple for its “walled garden” during his company’s quarterly earnings on Monday. “I think we want to emphasize that our goal is to support the advent of renewable energy,” he said. “It’s not to create a walled garden and use it to knock down our competitors, which is what some companies are using.” Musk pretended to cough and said “Apple.” It is believed that Apple is still working on its own electric vehicle, among other projects involving augmented reality glasses that are likely to launch much earlier than the car.